IBM raised its full-year 2013 non-GAAP EPS expectations by $0.20 to at least $16.90, it said. This excludes the $1 billion in charges for its "workforce rebalancing," which includes layoffs.

Even though this was a miss on revenues, this is overall good news for IBM. The stock is up in after hours trading.

As for revenue, Software revenue was up 4%, Services revenue down 4%, Systems and Technology revenue down 12% and Business analytics revenue up 11%. IBM's also said revenue for it new and very important cloud unit was up 70% in the first half.